Answer the question

1 Highway to Hello - 5 points The Government of lC'n'ntario plans to expand the Queen Elizabeth Highway between St. Catharines [S] and Toronto {T}. The highway upgrade costs C :2- D, and the value to S and T are US 2 [l and or E B, respectively. The government decides to set up an auction. St. Catharines and Toronto, indexed by i. with i E {3,T} are to simultaneously bid b,- E [I], oo} towards the costs of construction. It [13 + hr 33 C, then the highway is constructed. lD'therwise, the highway is not built. It the hid is successful, and the highway is to be constructed, each city 1' pays C 35,: to the provincial government, where j 75 1'. Furthermore, if the highway is built, then each town gets a payp: from the highway's value minus its own payment to the government. I:ll'tlierwise, their payo is '3. Find any dominant strategy this game may have